While there is a generally favorable climate for women-owned micro, small and medium-sized enterprises (WMSMEs) in the country, a study published by the Asian Development Bank (ADB) found that fewer women used digital financial services (DFS) as opposed to men.
The study, Measuring Progress on Women’s Financial Inclusion and Entrepreneurship in the Philippines, said MSMEs, particularly WMSMEs, continue to face barriers and obstacles to accessing and using financial services and products, including DFS.
“Although DFS is a vital component of financial inclusion and the empowerment of women, there is a major gender divide in terms of using digital financial services and technologies: 28 percent of WMSMEs use DFS while the adoption rate of DFS among men MSMEs was 44 percent,” the report said.
The report said majority of WMSMEs transact business through personal accounts, which limits their access to other financial services. Just 17 percent of WMSMEs use a business or merchant account versus 39 percent of men-owned MSMEs.
According to the study, women entrepreneurs use fewer banking services than their male counterparts across a range of accounts and related services.
“Awareness and comprehension of the benefits associated with opening a business or merchant account need to be enhanced for women to deepen their use of financial services and strengthen and grow their businesses,” the study said.
“Only four percent of WMSMEs (compared with 14 percent of men-owned MSMEs) use invoice financing and nine percent had a business loan (compared with 12 percent of men-owned MSMEs),” it added.
However, 27 percent of WMSMEs save for emergencies versus 19 percent of men-owned MSMEs.
The adoption of new technologies and digital platforms appeared to be more challenging for WMSMEs, the report said.
“This can be associated with the lower level of knowledge of women in information and communication technology, access to infrastructure and awareness and understanding of digital solutions. Several obstacles must be addressed for women to have equal access to and use of DFS,” it added.
The study pointed to DFS as a critical component of women’s financial inclusion and empowerment as it meets the unique financial needs of women while providing convenient and easy-to-access financial services.
“The ability to conduct financial transactions at any time and from any location enables WMSMEs to overcome time and mobility constraints while improving privacy, confidence and control over their finances, enhancing the financial autonomy of women,” it said.
“Digital finance also helps to lower banking and financial transactional costs and provides access to a broad range of financial services,” it added.
The study provided several recommendations, including tailoring products and services to WMSME needs and preferences; complementing financial products with nonfinancial services; improving and maintaining sex-disaggregated data collection and streamlining the definition of WMSMEs; and developing instruments to engage the finance sector in promoting finance to MSMEs and WMSMEs.
It also recommended promoting active engagement of women in creating financial and digital services by sharing their visions and expectations; boosting the demand for financial and digital services through access to information and awareness building; and strengthening and encouraging synergies and complementarity to drive change.
